Newsletters
FSTB Consultation Paper: Regulating OTC Virtual Asset Trading Under New Licensing Regime
The FSTB is proposing to introduce a new licensing regime to regulate providers of over-the-counter trading of virtual assets under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance
SFC issues guidance for tokenisation of SFC-authorised investment products and intermediaries engaging in Hong Kong tokenised securities-related activities
The SFC issued circulars providing guidance on the tokenisation of investment products and conduct-related guidance to intermediaries engaging in tokenisation of securities-related activities in Hong Kong.
Hong Kong Police Arrest Suspects in JPEX Scandal
The Hong Kong police arrested eighteen individuals on charges of suspected fraud in connection with unlicensed crypto exchange JPEX. According to reports, the alleged fraud involved over 2000 victims and resulted in losses of more than HK$1.5 billion. This news followed the Hong Kong Securities and Futures Commission’s (SFC) releasing of two public warnings in September 2023 regarding JPEX’s false claims to be regulated and its involvement in prohibited activities. In this newsletter the details behind the scandal are explored and the current investigation and the potential ramifications of the situation are considered.
HKMA Publishes 2023 Fintech Promotion Roadmap for Hong Kong
Hong Kong is on track to become a global Fintech hub with the HKMA’s announcement of its 2023 Fintech Promotion Roadmap. This roadmap seeks to promote Fintech adoption in the wealth management, insurance and green investment sectors, and the initiative is further supported by the HKMA’s Tech Baseline Assessment and Fintech Adoption Study. In this newsletter the objectives, strategies and implications of the HKMA’s Fintech Promotion Roadmap and how it can help the financial services industry keep up with the rapidly evolving Fintech sector are all explored.
SFC Warns Unlicensed Crypto Exchanges re. Improper Conduct
There are a number of existing virtual asset trading platforms (VATPs) operating in Hong Kong. How do existing VATPs comply with Hong Kong’s 2023 AMLO licensing regime? In this newsletter we set out the transitional arrangements that have been put in place to help existing VATPs transition to the new regime, including the deeming arrangement that provides an opportunity for exchanges to become licensed from 31 May 2024. Read on to find out more.
HKMA Urges Banks to Provide Banking Services to Virtual Asset Service Providers
The Hong Kong Monetary Authority (HKMA) released the Access to Banking Services for Corporate Customers circular to facilitate virtual asset service providers (VASPs) to access banking services in the Hong Kong. This came ahead of the implementation of the Hong Kong Securities and Futures Commission (SFC) licensing regime for VASPs on 1 June 2023. By paving the way for licensing applicants to meet the SFC’s requirement for bank account details before approving their licensing applications, the circular seeks to connect VASPs and banks in a transparent and secure manner. Follow this link to read an analysis in which we will take a closer look at the HKMA’s circular and its implications for VASPs in Hong Kong.
Hong Kong Monetary Authority commences e-HKD Pilot Programme
The HKMA has announced the commencement of its e-HKD Pilot Programme involving 16 firms across the financial, payment and technology sectors to examine different use cases and design issues.
SFC Circular on Implementing New Licensing Regime for Virtual Asset Trading Platform Operators
The SFC has issued a Circular on the implementation of its new AMLO licensing regime for centralised virtual asset trading platform operators which took effect on 1 June 2023
Hong Kong SFC Finalises Regulation of Virtual Asset Trading Platforms
The SFC has finalised the detailed regulatory requirements for SFC-licensed virtual asset trading platforms with the publication of its consultation conclusions on 23 May 2023
Hong Kong Legco delays timetable of Hong Kong VASP regime and SFC Statement on crypto investing risks
In December 2022 the HK Legco delays the Implementation Timetable of the Hong Kong VASP Regime under the HK AML/CTF Bill 2022 and the SFC issues a statement on VA Arrangements in Hong Kong.
Hong Kong Licensing Regime for Virtual Asset Exchanges to Take Effect on 1 March 2023 (July 2022)
Any person operating a VA exchange in Hong Kong will need to apply for a VASP licence or cease operations in Hong Kong. The Amendment Bill contains transitional provisions for operators of VA exchanges carrying on business in Hong Kong before 1 March 2023
HKMA Issues Proposals for Regulating Payment-related Stablecoins (January 2022)
The Hong Kong Monetary Authority (the HKMA) proposes to establish a regulatory framework for entities conducting activities in relation to payment-related stablecoins in Hong Kong, seeking public and industry feedback on its proposed regulatory approach.